The economic environment continued to present a challenging backdrop for Gleneagles Hotels in the year to 30 June 2012. However, Gleneagles made further financial progress following the initial impact of the recession in 2010, with turnover increasing by 3% to £36.7m, and profit before tax flat at £591,000. Finance Director, David Kemp comments:
Preparation for the Ryder Cup
“The profit for the year was after taking account of some specific costs related to preparation for the Ryder Cup in September 2014. The profit and loss account included costs of £405,000 to complete the final changes to the PGA Centenary Course, including redesigns of the 9th and 18th holes.
“In addition, capital costs included the installation of the high tech “Sub Air” system on the PGA Centenary Course greens to improve drainage. We have been delighted with the extremely positive feedback we have received from members, guests, visitors and professional golfers alike on these developments.
Improved revenues in restaurants, bars and leisure activities
“Room sales were broadly level with the previous year and the increase in turnover was mainly attributable to improved revenues in restaurants, bars and the various leisure activities at Gleneagles. We were pleased that the proportion of business from outside the UK increased by 4% in the year.
“Our priority as a business is to retain the very highest quality of facilities and service levels, throughout all economic conditions. We recognise that there is a cost to achieving this, but believe that such expenditure puts Gleneagles in the best position for the long term. The success of these investments continues to be evidenced by our industry and reader awards – see below.
Investment in the business
“Looking ahead, we are currently experiencing a small upswing in business volumes and we continue to invest in the business. Priorities for the current year include further investment in all of our golf courses and in infrastructure for the Ryder Cup; an exciting £4.5m refurbishment of our Club leisure pool facilities; and ongoing rolling room refurbishments. We look forward to continued progress of the Gleneagles business as we move towards and beyond the Ryder Cup in 2014.”
Recent awards:
Scotland’s Best Hotel/Resort 2013 – Today’s Golfer Travel Awards
Best UK Rural Hotel 2012 – Sunday Times Travel Magazine Reader Awards
Best Golf Resort in the World 2012 – Daily Telegraph ULTRAs Awards
Best UK Luxury Spa Resort 2012 – World Luxury Spa Travel Awards
International Resort of the Year 2012 – Scottish Hotel Awards
Best UK Conference Hotel (Gold) 2012 – C&IT Hot List 2012
Best UK Incentive Hotel (Silver) 2012 -C&IT Hot List 2012
Green Tourist Business Scheme 2012 – Gold award